On Monday, August 12, the Board gave direction to the financial advisor and bond counsel to proceed to bid on an anticipated $33 million debt issue to fund the remaining costs of the high school renovation project. The bonds were directed to be wrapped around existing debt so that the millage cost to the community will be minimized as the debt payments implement over a three year period. It is anticipated that the increase in millage will be below .2 mills each of the next three years to complete this financing. Board approval of the sale of these bonds is anticipated at the August 19, 2013 Board meeting.
The bond analysis has finally been shared with the public and can be found here. Debt Profile
Update August 15, 2013 1:33 AM Mt. Lebanon schools pick loan option
Update August 15, 2013 1:33 AM Mt. Lebanon schools pick loan option
6 comments:
and so, as the inevitable cost overruns continue to flow, there will be a need for a further bond in 2 years, maybe even sooner, depending on variables...wait for the pension bomb and other contingencies to throw the district into financial free fall
We have the same credit rating as the united States but the TAXABLE United States bonds due in 2043 are yielding 3.75% while MLSD tax-free bonds are yielding 4.81 in 2038. So our TAX-FREE bonds we are paying 1.06% more interest than the United States government's TAXABLE bonds. That makes no sense.
Hey, Jan Kline, why is a TAX-FREE bond worth less than a TAXABLE bond of the same credit rating?
Jan, if you were still the professional, I knew when you started here, you would not have put this bond deal in front of the Board.
I think it is time for you to retire, Ms Klein!
John Ewing
Any readers who still think this is a well-run community and school district need to have their heads examined. Wake up before it's too late, people!
The bond issues presented August 12 both raise $32,950,000. Another $50,000 would be $33,000,000 or $3,000,000 over the $30,000,000 the board was going to raise in place of the second bond float.
The second bond issue raises the $3,000,000 for facilities and we still have a $6,000,000 fundraiser. If the extra $3,000,000 has already been raised in the bond issue, the question becomes how is the extra $3,000,000 going to be spent?
Here is just another issue where the Board falls down on explaining things to the public. Who knows, maybe the Board will build sidewalks for Mrs. Descalzi. No, Mrs. Capucci already ignored that parent. I wonder what the Board really has in mind?
11:22 Are you saying that the school board is responsible for building sidewalks?
No.
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